No Service 11:20 AM Income Taxation Assignment 1 Al has been operating a supcessful wholesale business for many years. He has been reporting his on schedule C His balance sheet an of December 31, 2D25a Invenory 200.000 Machines and Equipment Macrs alowed 750,000 There are no accounts payable or accounts receiwable. The buiness has been growing and he is concerned about lublev so he formed Ainc. on January 2. 2016 and transferred all his assets to Al inc in exchange for 95 shares of sock. He sold S shares to outsiders for $10,000 each. He needed so build a larger facility. All Iinc purchased a bulding tor $1 milion using the 50,000 he got for sale of the stick and a 950,000 bank mortgage for the balance. Al Inc. will be paying interest only for 10 years and then paying princigal His pro-forma income statement for 2016 4,000,000 Cost of goods sold Bank interest on mertgage MACRS on building Salary to himself 1500,000 500,000 200,000 00 in dividend income and itemized deductions of 200 ides the income from Annhe has 20 He is single One of the people who purchased one share of Al Inc in a British citizen and resident. That dsqualfies Al inc. from electing Sub S treatment Compute the 2016 income and tax for Al personally and All Inc If you were his accountant are there any sucgestions you would make?a No Service 11:20 AM Income Taxation Assignment 1 Al has been operating a supcessful wholesale business for many years. He has been reporting his on schedule C His balance sheet an of December 31, 2D25a Invenory 200.000 Machines and Equipment Macrs alowed 750,000 There are no accounts payable or accounts receiwable. The buiness has been growing and he is concerned about lublev so he formed Ainc. on January 2. 2016 and transferred all his assets to Al inc in exchange for 95 shares of sock. He sold S shares to outsiders for $10,000 each. He needed so build a larger facility. All Iinc purchased a bulding tor $1 milion using the 50,000 he got for sale of the stick and a 950,000 bank mortgage for the balance. Al Inc. will be paying interest only for 10 years and then paying princigal His pro-forma income statement for 2016 4,000,000 Cost of goods sold Bank interest on mertgage MACRS on building Salary to himself 1500,000 500,000 200,000 00 in dividend income and itemized deductions of 200 ides the income from Annhe has 20 He is single One of the people who purchased one share of Al Inc in a British citizen and resident. That dsqualfies Al inc. from electing Sub S treatment Compute the 2016 income and tax for Al personally and All Inc If you were his accountant are there any sucgestions you would make?a